The truth behind the sale of the Presidential Jet

The Former Principal Secretary of Finance in the Office of the President and Cabinet (OPC), Mr. Joster M. Njanji, has revealed the truth behind the transactions on the sale of the Presidential Jet in sworn affidavits presented to the Lilongwe High Court in his defence, by his lawyer Dan Kuwali.

Joster M. Njanji is being accused by the state of theft, abuse of office and money laundering in connection to the K3billion Lutepo stole at OPC and misappropriating K670million meant for the Presidential Initiatives on Hunger and Poverty, which allegedly, were being financed in part, by the proceeds from the sale of the Presidential Jet. In his defence, Njanji argues that it is a factual error to allege that he misappropriated K670million from the proceeds of the sale of the Presidential Jet as NO ONE and I repeat NO ONE (emphasis is mine) including the Government of Malawi, its personal representatives or agents of state like the Reserve Bank of Malawi, received anything on the said sale transaction. He further argues that the truth on the sale of the Presidential Jet is that Paramount Group bought the plane from the Government of Malawi. At the same time Malawi Government, bought 7 XSR Military Class Interceptor boats from Paramount Group.

It was mutually agreed by representatives of the Government of Malawi (President Joyce Banda and General Odillo) and Paramount Group (CEO Ivor Ichikowitz) that there should be a trade-off in values for the items being sold and purchased and accordingly, based on the agreed values, it was found that the Government of Malawi owed Paramount Group K9.3billion, K5billion of which was already paid while Joster M. Njanji was still at OPC.

Njanji challenges the prosecution that according to the requirements of the Public Finance Management Act, all domestic or foreign proceeds, taxes, loans and any monetary resources forwarded to Malawi Government must be deposited in the Consolidated Fund (MG Account 1) established by the Act at the Reserve Bank of Malawi and that he has evidence (bank statements) showing that Government of Malawi received nothing on the sale of the jet and concludes, therefore, that accusing of misappropriating Presidential Jet Sale proceeds is preposterous. Now, according to the standard prices of the XSR Interceptor Boats that have done 30,000 nautical miles each costs 1.5million pounds (2.5million USD). Each of the boats that the Malawi Government bought is second hand and has done more than 100,000 nautical miles which means the cost should be lower.

Yet if you consider the 7 boats, it means they cost Malawi USD5.5million (that is, K9.3billion=USD23.2million plus USD15million (plane value) divide this by 7 boats). This is why the Government of Malawi is tongue tied to explain the whereabouts of the Presidential Jet sale proceeds. Joyce Banda stole close to USD21million (USD3million on each boat).